What is meant by favourable balance of trade? Whether India‟s foreign trade is favourable? PLS ANSWER THIS
What is meant by favourable balance of trade? Whether India‟s foreign trade is favourable? PLS ANSWER THIS
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Favourable trade balance
Unfavourable trade balance
a. Favourable trade balance implies when exports of a country are more than imports, that is the value of exports are more than its value of imports in a particular period of time.
unfavorable If country's imports are more than its exports, that is the value of imports exceeds value of exports, it amounts to unfavourable balance of trade.
b. . favourable exports are more than imports it amounts to trade surplus as it leads to inflow of foreign capital.
unfavorable If imports and more than exports it amounts to trade deficit.
Answer:
The Balance of Trade is an economic measure calculated by subtracting the total amount of imported items to the total amount of those exported. This balance explains how the country is positioned in terms of commercial relationships with other nations. If the balance is positive, it means the county exports more than what it imports and if it is a negative one, is the other way around. A favorable balance of trade is, nevertheless, not always a positive thing.